In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years after making the investment. If you can obtain a rate of return of 11% per annum, what is the present value of the investment today (rounded to the nearest Rand)? a. R31 728 b. R35 600 c. R30 000 d. R35 218 e. R33 500
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In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years after making the investment. If you can obtain a
R31 728
R35 600
R30 000
R35 218
R33 500
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Solved in 2 steps
- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?
- Suppose you have an investment worth $800 and you want it to increase in value by 400%. a) What is the desired future value of the investment? For full marks your answer(s) should be rounded to the nearest dollar. FV = $ 0.00 b) How long will it take the investment to reach the desired future value, if it earns 5.50% compounded semi-annually? Your an be rounded up to the nearest month. Time = 0 years 0 monthsFuture Value You invest $1,000 today and exect to sell the investment for $2,000 in 10 years. a. Is this a good deal if the investment rate is 6%? b. What if the interest rate is 10%? Why ? Show the calculations in Excel.If you invest $11,000 today, how much will you have in each of the following scenarios? (Click here to see present value and future value tables) A. 10 years at 8% B. 8 years at 12% C. 15 years at 15% D. 18 years at 5%
- There is an opportunity to earn P20,905 five years from now if you invest P9,524 today. What is the rate of return on investment?If you are promised $50,000 six years from now, the present worth at a real rate of return of 4% per year and an inflation rate of 3% per year is closest to:a. $27,600b. $29,800c. $33,100d. $37,200If you invest $12,000.00 today, how much will you have in the future under each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Present Value (PV) Rate Time (Years) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). PV Rate Time (Years) FV Factor (from Table) Future Value (FV) A $12,000.00 9% 10 B $12,000.00 12% 8 C $12,000.00 15% 14 D $12,000.00 10% 24 PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
- Hi, You have been approached to buy an investment which will pay you $1,000 at the end of 4years. The investment will also pay you $30 per annum (at the end of each year) as well.How much is this investment worth today? Assume interest rate of 8%How should i approach this? is the $30 per annum included in the PV?Thanks.You have $1725 to invest. You know that a particular investment will double your money in five years. How much will you have in 10 years if you invest in this investment, assuming that the annual rate of return is guaranteed for the time period? Cevap:Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and third years, you will receive payments in the amount of 40%, 45% and 50% respectively of your initital investment. What is the net present value (NPV) of the investment if the minimum attractive rate of return (MARR) is 7.8%. Calculate the MARR for an NPV between $0 and $1 and draw the cash flow diagram.
